Impact of Management Control Systems on Sustainability of Agricultural Small and Medium Firms: Mediating Role of Corporate Social Responsibility (CSR) Practices

Abstract

Purpose: The purpose of this paper is to determine the impact of management control systems such as self-control and organization’s norms on the sustainability of an organization with mediating role of corporate social responsibility (CSR) practices. The study focused on small and medium enterprises in the agricultural sector and how they can be sustainable by using these factors.
 Design/Methodology/Approach: This is a primary study based on quantitative data. The non-probability, convenience sampling is used. The research design includes hypotheses testing whether they are accepted or rejected. Data collection was done through closed-ended questionnaires with a Likert scale. The chosen sample size was 200 however, 184 questionnaires were received back after filling. Smart PLS was used for data analysis.
 Findings: Based on the analysis, all the hypotheses were accepted which show that there is indeed an impact of management control systems and organizations norms on an organization’s sustainability and CSR practices play the role of mediator.
 Implications/Originality/Value: Originality this study is testing the mediating effect of CSR practices on control systems, organizations norms and sustainability of the firm in the agricultural sector of Pakistan where small and medium enterprises related to the agricultural sector are targeted. There are very few researches that focused on SME’S in the agricultural sector of Pakistan, this study provided a detailed insight into this sector. The study will be of great value to agricultural and SME’s owners on how they can create sustainability in their firm.